Charter managment

Euromarine d.o.o. is one of the first companies in the world that operates in charter business since 1985, and is considered a pioneer in charter management-renting both bareboat and crewed vessels to boat navigators on a weekly basis. The headquarters is located in Zagreb, with charter bases in Pula, Split and Dubrovnik, where 45 employees take care of the administration, booking operations, sales, logistics & delivery, technical assistance and maintenance of the vessels in our fleet.

Croatia is home to the largest fleet of both monohulls and catamarans for charter purposes (30%) in Europe in comparison with Greece (18%), the Caribbean (16%), Italy (12%), and Spain (8%).

Following factors affecting growth of nautical tourism in Croatia:

• Indented and interesting coast with short ride distance between the islands makes the Croatian coast extremely suitable and convenient especially for family cruises and regattas
• Croatian geographic position and connectivity- Europeans, the biggest charter vessel users (80%) are able to reach any Croatian airport within max. three hours by plane
• Safe sea conditions without sudden or unpredictable weather
• Nautical infrastructure on most of the islands (marinas, berths, buoys, anchorages, drinkable tap water and electricity provided)
• Safe environment, very low crime rate
• Excellent connectivity of Croatian airports with all significant European international airports

About the Charter Management Program

Charter Management Program consists of: purchasing a Jeanneau vessel, signing a Cooperation Agreement (CA), renting the vessel between the owner (legal person) and the charter operator, in this case-Euromarine, exploitation and usage from the owner’s side. In case the owner decides to sell the vessel at the end of the charter cycle, the vessel can be put up for sale.

The investor should first decide on the size and model of the boat, which is most often related to the layout of the boat, number of cabins and number of toilets.

Euromarine then issues an offer for purchasing the vessel with the standard charter equipment specifications which may vary depending on the client’s wishes. The specification must include the minimum safety and charter equipment according to standards of both port authority and Euromarine.

In order for the client to realize the purchase of the vessel, Euromarine offers also an option of financing through our partner leasing companies.

Clients that decide to purchase the vessel financing through leasing can easily do so using our leasing service provided by our partners with low interest rates, various options and periods of financing tailored according to client's wishes. Euromarine also offers an option of financing using the leasing service for new established ventures with no previous creditworthiness, which is needed for approval of the financing in other cases.

Euromarine offers a company start-up package which includes company management and an address at very reasonable prices tailored for clients that already do not have a registered company for the charter business, or any registered company at all. In this case, the client needs to take a few hours to set up the company and everything can be done at one place after issuing power of attorney to Euromarine in order to start up a company and similar actions necessary.

This service is very appealing to foreigners, since this approach makes the process of purchasing the boat, staring a company, funding and insurance simple and convenient as everything can be done at one place, i.e.” one stop shop”. Clients are able to bypass all the bureaucratic obstacles.

Deciding on the Type of the Vessel

Jeanneau’s range of vessels include 9 to 21m sailboats with 2 to 6 cabins and is the most complete gamma of sailboats in the world, offering a variety of designs, layouts and versions; a classic charter layout with a maximum number of both cabins and toilets on a given size of the boat, owner versions and a combination of owner and charter version, depending on the current need.

Upon selecting a model, it is important to determine the budget the client is willing to set aside for the purchase of the vessel, the size and number of cabins, as well as to take into account the projected revenue generated by the charter business. Also, it is important to consider the selling price of a used boat after the charter cycle has ended and the moment of sale comes. Used Jeanneau vessels are highly priced and are easily sold.

Using the Vessel

The owner has the right to use the vessels when and as long as he/she wants under condition that the vessel was not previously occupied by the charterer. The owner is able to see the occupancy of the boat on line at all times, and can let our booking department know about the desired period at which he/she wants to use the boat. In that case, those charter periods will be reserved for the owner.

Revenue Allocation and Cost Specification

Euromarine charges the boat owner a management fee of 35%, leaving 65% of the charter revenue to the boat owner.

The boat owner is responsible for the following costs:

• Berth in the marina
• Insurance
• Maintenance (two crane operations, engine service, polishing, antifouling, salis service, lump sum for winter maintenance)

Euromarine is responsible for the following costs:

• Agency commission
• Booking administration, handover and guest relations in general
• Participation on international boat shows
• Advertising and marketing

The owner has the opportunity to book their own boat or any other boat from Euromarine's fleet and get additional 15% of the income when the booking is realized.

Euromarine Charter Bases

Euromarine charter bases are located in Pula, Split and Dubrovnik. The boat owner can choose the base from which he/she wants to rent the boat. After each season he/she can choose another base to rent the boat from or the boat can remain in the same base as previous seasons. Our booking department can propose the base, depending on the requirements of charter clients in order to maximize profits.

After the Charter Cycle Has Been Completed

Yachts intended for charter have completed their charter cycle after a maximum of ten years. There are two options for the owner afterwards:

1) The owner retains the vessel for his/her private use - in this case we offer the owner the option of arranging and adjusting the vessel to his/her personal requirements, such as the installation of equipment that is not standard in the charter industry (air conditioning, generator, water-maker, heating, etc.), replacement of sails, teak placement, hull coloring

2) The owner decides to sell his used boat: our brokerage department advertises the vessel on all relevant sales channels and in cooperation with other brokers in the world sells the boat

Contact

For more information, such as boat offers and a more detailed cost specification, please contact our sales department by e-mail: info@euromarine.hr or telephone: +385989363007